EA's digital sales are on the rise
The company's revenue is increasing from online and mobile gaming
Electronic Arts says that it expects its revenues from digital downloads to overtake boxed game sales within a few years.
EA's COO, Peter Moore said that the company's revenue is increasing from online and mobile gaming.
"There will come a point, whether it is two or three years from now, when we say. 'We are doing more in digital media now than we are in physical media,' and it's clearly ... not far away," Moore said, citing the rise of EA's digital revenue for the trailing 12 months to $1.3 billion.
As the gaming community comes together for gamescom 2012, investors are questioning whether traditional distributors will be able to compete with companies like Zynga, which distributes the majority of its games via Facebook.
"This fiscal year we have 41 social mobile and free-to-play games on the slate, and later in the year we might make announcements about more games coming," Moore said.
US boxed game sales have dropped 20% in July to $548 million, this accounts for nearly half of the $1.1 billion consumer spend on computer games. Revenues from mobile apps and social network games was $439 million according to research firm NPD Group.
EA is looking at 42.6 billion in revenue worldwide from boxed games and $1.7 billion from digital products in fiscal year to March 2013.Digital revenue jumped nearly 55% in the first quarter, while total revenue declined.
Moore said that the company has no plans of abandoning physical media. "We will never abandon physical media. As long as the consumer wants to buy something on a disc, we will be there to offer it."